Exchange Rates Fluctuations and International Operations
Ebert and Griffin (2016) discussed the important factors concerning which companies should be concerned in foreign operations. In the first section, which explored the modern business world in greater detail, the issues were especially raised. In the last part of the introductory chapter, he addressed the issues which must be studied first within a global context in order to assess the efficacy of certain initiatives for maximization of benefit (Ebert & Griffin, 2017). The main issues discussed were how fluctuation in the exchange rate impact the foreign platform's business activities. It is therefore paramount for companies to take the international rates seriously especially in informing policies. The fluctuations rates changes in every few seconds and within a short time, there can be a big change that has come without warning. Ebert and Griffin, therefore, argued that there should be contingency measures to deal with such fluctuations to avoid potential business losses. Businesses, in this case, should, for example, have a full knowledge of how the local currency is being affected by others and the impacts on the imports, suppliers. A profound knowledge of the past conversion rates can help determine the extent to which the rates are likely to move. The information help to make short-term decisions on important matters such as the most appropriate time to make conversions. Exchange rates fluctuations require businesses to make the right timing on exportation and purchasing. These practices should be undertaken at a time when the fluctuation rates favor business transactions. Conclusively, companies operating on an international platform should underscore the issue of exchange rates fluctuations which should influence a majority of the organizational decisions.
References
Ebert, R. J., & Ricky, G. W. (2017). Business Essentials, 11th Global Edition. Pearson.
Academic levels
Skills
Paper formats
Urgency types
Assignment types
Prices that are easy on your wallet
Our experts are ready to do an excellent job starting at $14.99 per page
We at GrabMyEssay.com
work according to the General Data Protection Regulation (GDPR), which means you have the control over your personal data. All payment transactions go through a secure online payment system, thus your Billing information is not stored, saved or available to the Company in any way. Additionally, we guarantee confidentiality and anonymity all throughout your cooperation with our Company.